Cepheids as standard candles: a 1% distance scale for cosmology? Thanks to their period-luminosity (PL) relation, Cepheids provide one of the most accurate empirical distance scales, applicable up to at least 20 Mpc. They are in particular at the base of the calibration of secondary distance indicators, such as SN Ia. In the era of precision cosmology, the calibration of the PL relation at the 1% level is however complicated by the fact that long-period Cepheids are too distant for direct and accurate trigonometric parallax measurements (even for GAIA). The most accurate Cepheid distances are currently based on the classical Baade-Wesselink (BW) technique, which in turn relies on surface brightness-color relations and a velocity conversion factor (the projection factor). To bypass this dependance, we applied a novel technique based on the measurement of the changes in angular diameter of Cepheids using optical long-baseline interferometry. I will present the results we obtained from interferometric observations of a sample of Galactic Cepheids, with an emphasis on the projection factor employed in BW techniques. I will also briefly discuss the influence of circumstellar envelopes on these observations, their potential impact on the distance scale, and present the special case of the dust-embedded Cepheid RS Puppis. As they are relatively massive stars, Cepheids are often members of multiple systems. We discovered that they also host bright circumstellar envelopes, particularly at infrared wavelengths. Binarity and envelopes can both affect the apparent brightness of Cepheids, potentially biasing the calibration of the PL relation. But these properties also provide us with new tools to measure geometric distances (through binary orbits), and to better understand the evolution and complex dynamics of the Cepheid atmospheres. I will present our recent results and ongoing programs on this front.